5 Terms You Should Know Before Buying a Car

Author: Cook Hood

There are a number of variations in the car brands, and each brand has its number of design from low price to high prices. Some people purchase by their look and few of them buying them for their needs which might be cheap or costly. Few of them are just unaware from the so many terms; it is not that much easy to buy a car, you have to do so many steps before it like arrangement of funds, license, and owner of the car should be officially eligible for buying a car. And in case if you don’t have funds or you are buying with the help of loan then it is tougher to handle and understand.

The differences also create in-between online and offline, while online so many extra taxes are get included. It is just that you have to keep enough knowledge that no one can make you fool. There are so many agents are available in the market for making people fool and make extra money. In this article, important terms are given that if you know it, it would be easier for you to purchase a car:-

1. Funds for the Purpose

It means you get the car through direct cash payment without any interest, etc. It is the easiest way to buy a car but it also creates a problem when the prices are above 10 Lakhs and that time you have some important government papers like income tax return papers, residential, identity card, etc. If you buy a car at one-time payment it will save your more and can help in the time of Car Repair Farnham. Here are the few reasons that why this way is better are:-

  • You might get offers and discount.
  • Payless as compare to other options.
  • No requirement to pay interest.

2. PCP – Personal Contract Purchase

It is like a contract plan in which customer has to pay a lower monthly payment on a monthly basis like of 24 and 48 months and a balloon payment are made which have to submit at the end of the agreement. The total records are stored in the car’s history; it is only because it can’t be sold without clearing to total finance. This option is for customers who are not eligible to pay the total amount at the same time. In this instead of getting the loan on the basis of the total cost of a car, you get the difference between the total prices of the car to the predicted value of the car at the end of the agreement which is called balloon payment.

3. HP – High Purchase

It is same as Personal contact purchase but in this, you have to pay 10% of the total payment and remaining payment will be payable by the customer in the term of deposits. The deposits are decided by the car dealer at the beginning of the agreement and you have to pay the deposits on a monthly basis. And you can’t get the vehicle till your last deposits. Yes, it is like a saving to buy a car.

4. Personal Loan

If you do not have enough funds and you do not have time to pay the deposits then you have one more option which is Personal loan in which you do not have to pay any deposits and you can take your car at the first payment and the payment will exceed to 1 to 7 years and you can also take services from any location like Car Service Farnham, Portsmouth, etc. You can take a personal loan from the bank, finance provider, and building society. In the case of the bank, you have to submit your house paper or property papers just for a surety that you will pay back all amounts.

5. Taxes and Fees

If you are thinking that the given car’s price is 10 Lakhs when you reach up to buying, it gets converted into 10+ Lakhs because it includes taxes like VAT, registration charge, road tax, TCS, etc. so, it is then converted into 11.5 Lakhs. Instead of taxes it also includes the charges of seats, soundbox and many more after the purchasing. Price of the car in a showroom is less than when it comes on the road. So, be prepared with your funds and loans according to the desire car including its taxes.